NTC denies telcos' appeal on lowering cost of text messages

Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. must lower the rates of text messages to P0.80 from P1 and give back to subscribers the P0.20 difference for every text message sent since December 2011. 

 

In separate orders the commission issued on Wednesday to GLobe, PLDT's Smart Communications Inc. and subsidiary PLDT, Digitel Mobile Philippines Inc., the regulator denied the appeal the telcos filed before the commission in December 2012 to reverse the December 2011 order on short messaging service (SMS) rates.

 

In an interview with reporters, NTC Common Carriers Authorization director  Edgardo Cabarios said  Smart, Globe, and Digitel's Sun Cellular simply have to heed with Memorandum Circular 02-10-2011 or the “Interconnection Charge for SMS” that the commission issued in December 2011.

 

According to NTC, “the commission finds no congent or compelling reason to disturb its previous order which clearly explained the basis for this ruling.”

 

SMS is  value-added service, and the commission is not constrained from reducing the cost of communications in the interest of the public, the NTC noted.

 

Commissioner Gamaliel Cordoba and Deputy Commissioners Carlo Jose Martinez and Delilah Deles signed the orders.

2 billion text messages a day

 

"Globe Telecom has yet to receive an official copy of the NTC resolution on SMS rates," the telco said in an e-mailed statement. " The company will evaluate the legal merits of the said resolution with due consideration for the interest of its subscribers," it added.

 

In a text message to reporters, PLDT Group spokesperson Ramon Isberto said practically the same thing.

 

“We have not received a copy of the decision,  but we will issue a statement after we have studied it,” Isberto said.

 

Cabarios noted it would cost the telecos billions of pesos if they decide not to immediately heed the NTC order.

 

On average, two billion text messages are sent by subscribers per day, the NTC official noted,  saying the orders cover only off-net or inter-network SMS and regular text messages not covered by promos like unlimited text offers.

 

The telcos may simply credit the prepaid load of subscribers, as well as the monthly billing of postpaid subscribers, Cabarios said. 

 

Globe, Smart and Sun would have to pay a daily fine of P200 for each day since December 2011 that they fail to comply with the NTC order, the commission said.

 

Latest NTC data showed the PLDT Group registered 70.5 million subscribers as of end-March 2014, and Globe had 38.1 million subscribers as of end-December 2013. – VS, GMA News